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Goldman Sachs Group Inc's profit fell 12 percent in the second quarter due to losses on some equity investments and a slowdown in dealmaking activity.
The biggest US investment bank also said on Tuesday that it was in the process of implementing more cost-cutting to bolster its bottom line. Goldman cut 100 jobs during the second quarter and trimmed other expenses, including market development, occupancy and professional fees.
Goldman earned $927 million, or $1.78 per share, in the quarter, down from $1.052 billion, or $1.85 per share, a year earlier. Analysts' average forecast was $1.16 per share, according to Thomson Reuters I/B/E/S.
Goldman's investment in Industrial and Commercial Bank of China Ltd (ICBC) resulted in a $194 million loss during the quarter. Other public equity investments lost $112 million, and overall its lending and investing division reported an 81 percent decline in net revenue, to $203 million from over $1 billion a year earlier.
The investment bank's total net revenue fell 9 percent to $6.6 billion.
Operating expenses were down 8 percent to $5.2 billion. - Reuters